| 1 | 1 | | By: Middleton S.B. No. 2553 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the establishment of a strategic reserve of gas and |
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| 7 | 7 | | crude oil and a severance tax credit for delivering gas and oil to |
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| 8 | 8 | | the reserve. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 81, Natural Resources Code, is amended |
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| 11 | 11 | | by adding Subchapter G to read as follows: |
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| 12 | 12 | | SUBCHAPTER G. STRATEGIC GAS AND CRUDE OIL RESERVE |
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| 13 | 13 | | Sec. 81.171. DEFINITIONS. In this subchapter: |
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| 14 | 14 | | (1) "Program" means the strategic gas and crude oil |
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| 15 | 15 | | reserve program established under this subchapter. |
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| 16 | 16 | | (2) "Reserve" means the strategic gas and crude oil |
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| 17 | 17 | | reserve maintained under this subchapter. |
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| 18 | 18 | | Sec. 81.172. PROGRAM ESTABLISHMENT; POWERS. (a) The |
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| 19 | 19 | | commission shall establish a program for acquiring and maintaining |
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| 20 | 20 | | a strategic gas and crude oil reserve for the distribution of gas |
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| 21 | 21 | | and crude oil in this state. |
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| 22 | 22 | | (b) The commission may purchase, lease, or sell property, |
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| 23 | 23 | | including gas or crude oil, or take any other action reasonably |
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| 24 | 24 | | necessary to establish the program required by Subsection (a). |
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| 25 | 25 | | (c) The commission may accept gifts, grants, and donations, |
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| 26 | 26 | | including gas or crude oil, to implement the program. |
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| 27 | 27 | | Sec. 81.173. GUIDELINE FOR PROGRAM ESTABLISHMENT AND |
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| 28 | 28 | | OPERATION. The program must be established and operated in a manner |
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| 29 | 29 | | that avoids unnecessary impacts on the gas and oil industries when |
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| 30 | 30 | | acquiring or distributing the gas or crude oil and minimizes the |
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| 31 | 31 | | cost of establishing and operating the program. |
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| 32 | 32 | | Sec. 81.174. RULES. (a) The Public Utility Commission of |
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| 33 | 33 | | Texas shall adopt rules governing the conditions under which gas or |
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| 34 | 34 | | crude oil may be distributed from the reserve. |
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| 35 | 35 | | (b) The commission may adopt rules to implement this |
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| 36 | 36 | | subchapter, other than the rules required by Subsection (a). |
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| 37 | 37 | | SECTION 2. Subchapter E, Chapter 201, Tax Code, is amended |
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| 38 | 38 | | by adding Section 201.2025 to read as follows: |
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| 39 | 39 | | Sec. 201.2025. TAX CREDIT FOR IN-KIND DELIVERY OF GAS. (a) |
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| 40 | 40 | | The person responsible for the payment of the tax imposed by this |
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| 41 | 41 | | chapter is entitled to a credit against the tax in the amount and |
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| 42 | 42 | | under the conditions provided by this section. |
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| 43 | 43 | | (b) The amount of the credit is equal to the market value of |
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| 44 | 44 | | gas delivered, including transportation, without charge to and |
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| 45 | 45 | | accepted by this state for the purpose of strategic energy storage. |
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| 46 | 46 | | (c) The credit may not be applied against any portion of the |
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| 47 | 47 | | tax that is required by the state constitution to be deposited to |
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| 48 | 48 | | the credit of the foundation school fund or transferred to the state |
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| 49 | 49 | | highway fund. |
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| 50 | 50 | | (d) A taxpayer may carry any unused credit forward until the |
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| 51 | 51 | | credit is used. |
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| 52 | 52 | | (e) The comptroller may adopt rules to implement this |
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| 53 | 53 | | section. |
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| 54 | 54 | | SECTION 3. Subchapter D, Chapter 202, Tax Code, is amended |
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| 55 | 55 | | by adding Section 202.1515 to read as follows: |
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| 56 | 56 | | Sec. 202.1515. TAX CREDIT FOR IN-KIND DELIVERY OF OIL. (a) |
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| 57 | 57 | | The person responsible for the payment of the tax imposed by this |
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| 58 | 58 | | chapter is entitled to a credit against the tax in the amount and |
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| 59 | 59 | | under the conditions provided by this section. |
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| 60 | 60 | | (b) The amount of the credit is equal to the market value of |
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| 61 | 61 | | oil delivered, including transportation, without charge to and |
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| 62 | 62 | | accepted by this state for the purpose of strategic energy storage. |
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| 63 | 63 | | (c) The credit may not be applied against any portion of the |
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| 64 | 64 | | tax that is required by the state constitution to be deposited to |
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| 65 | 65 | | the credit of the foundation school fund or transferred to the state |
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| 66 | 66 | | highway fund. |
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| 67 | 67 | | (d) A taxpayer may carry any unused credit forward until the |
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| 68 | 68 | | credit is used. |
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| 69 | 69 | | (e) The comptroller may adopt rules to implement this |
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| 70 | 70 | | section. |
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| 71 | 71 | | SECTION 4. As soon as practicable after the strategic gas |
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| 72 | 72 | | and crude oil reserve is established under Subchapter G, Chapter |
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| 73 | 73 | | 81, Natural Resources Code, as added by this Act, the Public Utility |
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| 74 | 74 | | Commission of Texas shall adopt the rules required by Section |
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| 75 | 75 | | 81.174(a), Natural Resources Code, as added by this Act. |
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| 76 | 76 | | SECTION 5. The change in law made by this Act does not |
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| 77 | 77 | | affect tax liability accruing before the effective date of this |
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| 78 | 78 | | Act. That liability continues in effect as if this Act had not been |
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| 79 | 79 | | enacted, and the former law is continued in effect for the |
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| 80 | 80 | | collection of taxes due and for civil and criminal enforcement of |
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| 81 | 81 | | the liability for those taxes. |
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| 82 | 82 | | SECTION 6. This Act takes effect September 1, 2023. |
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